Customs Procedures and Valuation: Essential Principles

1. Basic Purposes of Customs

• Inspection of goods: Ensuring compliance with regulations.
• Collection of customs duties: Managing fiscal revenue.
• Statistical control: Registration and monitoring of trade operations.

2. The Customs Area

A customs area is a designated space for the storage of commercial goods that have not yet cleared customs. It is enclosed by customs borders.

Differences Between Customs and Customs Areas

These are physical spaces where goods intended for export, import, or transit are presented to undergo the relevant customs procedures. Once located in these areas, goods are under customs control. Authorization of these areas is the responsibility of customs authorities. Examples include seaports, airports, and customs warehouses.

3. Roles of Customs Control

Customs control involves the implementation of customs legislation and tax laws governing import and export operations.

Other Customs-Related Controls

These are services provided by other state agencies within the customs area, such as Health Control for products intended for the domestic market.

4. Maximum Period of Stay for Goods

• By Sea: The deadline for permanence is 45 days from the date of the summary declaration.
• By Land or Air: The length of stay is 20 days from the date of the summary declaration.

5. Cargo Manifest vs. Summary Declaration

• Cargo Manifest: A binding commercial document drawn up by international shipping companies listing all cargo.
• Summary Declaration: A document specifying the goods to be unloaded in a given customs area.

6. Customs Value

The customs value of imported goods is their transaction value, defined as the price actually paid or payable for the goods when sold for export.

Calculating Customs Value

The formula for the transaction value method is:

VALUATION = VALUE OF TRANSACTION + POSITIVE CONCEPTS – NEGATIVE CONCEPTS

Positive Adjustments (Additions)

These are costs paid by the importer not included in the invoice, such as:

• Commissions and brokerage fees.
• Containers and packing costs.
• Materials, components, and similar items.
• Proceeds from any subsequent resale.

Negative Adjustments (Deductions)

These are costs that must be excluded from the invoice, such as:

• Costs of transport after arrival at the place of introduction.
• Customs duties and taxes payable in the Community.

7. Secondary Valuation Methods

If the transaction value cannot be used, the following methods must be applied in this specific order:

1. Transaction Value of Identical Goods
2. Transaction Value of Similar Goods
3. Deductive Value
4. Computed Value
5. Last Resort Value